Discover everything you need to know about this key US data release that often moves markets, with our interactive widget below.
The Consumer Price Index, released by the US Bureau of Labor Statistics, is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
The purchasing power of the USD is often dragged down by inflation – the CPI is a key indicator to measure inflation and changes in purchasing trends.
The CPI report can be useful for traders trying to manage their risk management strategies, especially as inflation or deflation, a key part of the report, can cause market volatility.
The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to such a mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days.
Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.